All Forum Posts by: Tom Gimer

Likely. There is no limit to the number of LLC members.

While there may be some background research in evaluating deals, "clearing title" doesn't happen until the title company is ready to close your transaction. 

Obtaining and reviewing a title search is not the end of clearing title. It may give you a good idea of what's going on with a property, but that's certainly not the end of it. Let's say you identify a target and buy a title search from some online-only search company (ptooey). The title report identifies 2 potential liens -- a mortgage and a judgment. In order to clear title you'll need more than written payoff statements from both lienholders (oh, the seller hasn't paid his mortgage in 6 months -- he didn't mention that!) ... you'll also need a tax cert, water bills and any other payoffs potentially affecting title. Some sellers are clueless as to what they really owe to get out of a property.

The best way to "clear title" as a buyer is to avoid getting yourself in a title mess by wholesaling a deal that can't close. You do this by requiring (as others have mentioned) clear and marketable title from you seller as a prerequisite.  The right contract forms are invaluable in your trade.

Ah -- Florida. A Certificate of Title will be recorded rather than a deed. No warranties. Check the county website for terms of sale.

Real estate Tax IDs are likely those of the entire cooperative rather than the individual units.  The cooperative is billed for the entire amount and tax bills are paid -- to the cooperative -- through monthly maintenance fees. Sounds like you have 2 unit 1As in different buildings.

The Executor/PR can and should sell the property before probate is closed. This -- marsaling assets and paying creditors -- is part of the administration of the estate. Buy owners title insurance and If anything interesting arises, it's not your problem.

Don't confuse the seller's warranties with the insurance policy.

With special warranty deed the seller is only certifying and agreeing to remedy things that occurred during their ownership (rather than the property's entire history).

Title insurance, on the other hand, responds to defects in title not discovered through search/exam such as fraud, forgery, undisclosed heirs, etc. (or errors by the title examiner/title company).

You wouldn't have title insurance coverage for mechanics liens under either scenario unless you purchase an enhanced owners policy (or paid an extra-hazardous risk premium). However, if the seller signed an affidavit stating they paid for all work on the property, and a contractor filed a lien, the seller would be obligated to pay that claim... not the title insurer.

Anyway, you'll never get a general warranty deed in a foreclosure situation. The "seller" in these transactions knows very little about the property... and will often refuse to even execute an owners' affidavit.

Auction.com typically provides (via PDF download) a copy of the Purchase Agreement that must be executed by the winning bidder. If you review the section of that agreement regarding Seller deliveries, you will be able to determine the type of deed the seller will be executing -- likely a special warranty deed.

Niklas -- sounds like a great idea. If you need space at a central location, we just opened up a new office in Georgetown and could host until the group outgrows it.